AST SpaceMobile Shares Drop Nearly 10% Following Analyst Downgrade

AST SpaceMobile's stock plummeted by almost 10% after a bearish analyst note from Chris Schoell, who downgraded the satellite telephony specialist to neutral from buy. The revised price target now stands at $43, down sharply from $62, reflecting growing concerns over competitive pressures.

SpaceX's recent acquisition of 5G spectrum for its Starlink phone service has intensified the rivalry, casting a shadow over AST's network expansion efforts. Schoell acknowledged AST's carrier partnerships and technological edge but slashed long-term revenue projections to $3 billion by 2030.

The S&P 500's 0.3% gain underscored the stock's underperformance, highlighting investor skepticism toward space-based telecom ventures amid escalating capital demands and Musk-backed competition.